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Categorizing Refunds on Schedule C
Looking at the details for Schedule C, Line 2/Returns & Allowances, the IRS instruction form states, "A sales return is a cash or credit refund
you gave to customers who returned defective, damaged, or unwanted products."
I started selling products online this year through seller sites (not handmade) and gave refunds to customers for defective/broken products but did not require the sender to return it to me.
How do I correctly categorize a refund charge on my schedule C? Would it be "Other Expenses"/Part V? Thank you in advance!
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‎April 12, 2022
2:27 PM